Sunday Money: Smart Ways to Spend Your Tax Money

Tax refunds are in the mail! With the average taxpayer expecting to rake in a refund of more than $3,000, what should you do with the windfall?

IF YOU ARE EXPECTING A REFUND, WHAT IS THE SOLID “EAT YOUR VEGETABLES” ADVICE?

1. Pay down high-interest debt: this is how 40% of Americans will use part of their tax refund.
2. Increase savings: 40% of Americans will save part of it. Ideally, you should aim to have enough in your emergency fund to cover three months of must-pay living expenses.
3. Fund a big-ticket item: Braces. Vacation. Tuition. Down payment on a new car.